Reply To Fruitgrowers

Northern Advocate, 20 November 1943, Page 4

Reply To Fruitgrowers

(P.A.) WELLINGTON, This Day. Commenting cri the statement of the Fruitgrowers Federation, the deputyPrime Minister (Hon. W. Nash) said that while recognising the great importance of the production of fruit in New Zealand, it was necessary to consider the affairs of industry in relation to the economic position of New Zealand as a whole, and to ensure that it was seen in its proper perspective. “The position is that prior to the outbreak of war the industry was in receipt of State guarantee in regard to its exports,” he said. “At the outbreak of war when the export markets vanished, the industry was guaranteed an average return of 5/- per case, increased to 5/3 average for the 1941 and 1942 seasons. Assistance was given to the industry in 1941 amounting to the sum of £468,000. The following year this assistance was continued, the cost to the Government being £130.000.

“Last season, negotiations concerning prices were proceeding when the Prime Minister announced a general scheme of economic stabilisation. Special consideration was, however given to the financial position of the fruit industry and additional cost allowances granted which had the' effect of improving the growers’ position for last season as compared with the earlier years of the war and probably placing the industry, as a whole, in as good a position as it was under pre-war years. Costs Firmly Held “During the past year, under stabilisation, the growers’ costs have been firmly held and at an interview which took place on the 18th I indicated the additional assistance which the Government was prepared to give for the forthcoming season, the effect of which would give growers a higher return per case than they obtained last year. All enquiries which have been made into the affairs of the industry have proved that quite a substantial proportion of crops marketed are produced on a payable economic basis, and the economic survey which has now been offered is not merely a further enquiry, but has for its definite objective, the placing of the uneconomic portion of the industry on a satisfactory basis. “It is considered that under war conditions, within the framework of an economic policy which aims at holding costs and prices, the offer made by the Government was an equitable one.”